Abstract: Xinjiang River is the third most important river in Jiangxi Province. Sustainable development of Xinjiang River watershed ecosystem not only directly relate to sustainable socio-economic development of the counties through which the river flows, but also the comprehensive, coordinated and sustainable socio-economic development of entire Jiangxi Province. On the basis of the study, the paper indicates that sustainable development of Xinjiang River watershed ecosystem faces a series of challenges, e.g., ecological degradation, soil erosion, environmental pollution, natural disaster and impoverishment. To stimulate sustainable development of Xinjiang River watershed ecosystem in the new century, the author advances several countermeasures, including: development of ecological industry, extension of ecological agriculture, advocating and promoting ecotourism, enhancing ecological management and speeding up ecological construction.